MIPIM 2023 Digital Edition

1
Only optimists succeed. As a real estate consultancy that does
not specialize in just one area, such as transaction business, for
instance, we do not see a slump in demand for our services but
rather a shift within our service portfolio. The favorites of investors
in all asset classes will be sustainable properties in particular, but
also those that can be developed there with realistic outlay.
2
Considering that the prime rate is currently at 3%, some business models or real
estate investments simply no longer pay off from an investor’s point of view, and
company values are also falling. Refinancing costs for bonds are also only possible
at significantly higher coupon rate than a year ago, making capital market
financing more complex and more expensive. In any case, the biggest challenge in
2023 will be to ensure the robustness of the respective business models.
4
3
The wild party is over, but the music is still playing. The current
financing situation is nothing new; rather, we are back to the
regular interest rate situation we were used to for decades. We
were simply too spoiled in recent years and now have to plan more
efficiently again and make well-considered purchases.
Due to the current situation on the transaction market and the capital market,
companies will have to focus much more on the real estate itself again and work
on the properties to make them climate-ready as well as transaction-ready. The
due diligence phases are becoming longer again, and more minor issues that
were considered insignificant in recent years are once again being negotiated
more intensively in transactions. Additionally, the key topics for 2023 are the
ESG, digitization of asset management and portfolio management data, and
more substantial stakeholder dialogue.
5
Marius Richter,
PwC
In 2023, we want to further expand our
PwC Real Estate platform to broaden
our full-service offering. The platform
comprises real estate lawyers, tax advisors,
auditors and business consultants
specializing in the sector. We want to work
together with the industry on intelligent
and smart ESG solutions and jointly
promote standardization in this area.
In my opinion, there are still too many
and too few coordinated solutions and
measurement criteria within the industry.
We want to work on more transparent
and uniform guidelines, especially with
the interest groups of the real estate
industry and contribute our ESG knowhow.
Working together is the only way to
manage the energy transition in the real
estate industry.
MIPIM | 2023
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